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Mine Type Q2 Tonnage Quarter Change

Total 9,903,261 -13.1%

Underground 7,639,974 -10.5%

Surface 2,263,287 -20.9%

During the second quarter of 2016, underground mines in Kentucky produced 7.6 million tons, a reduction of 10.5 per-cent from the first quarter of 2016 and accounted for 77 percent of production. Western Kentucky coal mines de-creased production by 12.3 percent, to produce 5.9 million tons for the quarter. Eastern Kentucky mines decreased pro-duction by 14.3 percent to produce 3.9 million tons. The rate of Kentucky coal production in 2016 is the lowest statewide production rate since 1934 and the lowest in eastern Ken-tucky since 1915.

Many coal-fired power plants across the United States have closed in response to federal environmental regulations, high production costs, low natural gas prices, and low electricity demand, which has reduced demand for Kentucky coal. Ap-proximately 85 percent of the coal mined in Kentucky in 2015 was used to generate electricity at 89 power plants in 15 states—located primarily in the Southeast. In 2016, Ken-tucky continues to sell coal to many power plants that are scheduled to close before 2019.

Kentucky Quarterly Coal Report April to June 2016

Preliminary data indicate that total coal production at Ken-tucky mines declined by 13.1 percent during the second quarter of 2016 to 9.9 million tons.

Region Q2 Tonnage Quarter Change Total 9,903,261 -13.1%

Western Kentucky 5,933,430 -12.3% Eastern Kentucky 3,969,831 -14.3%

Coal production at surface mines decreased by 20.9 percent during the second quarter of 2016 and accounted for 23 percent of total Kentucky production.

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Eastern Kentucky Coal Production

Mine Type Q2 Tonnage Quarter Change Total 3,969,831 -14.3%

Underground 2,299,705 -7.7% Surface 1,670,126 -22.1%

     

     

Underground mining techniques were the leading method of coal extraction in eastern Kentucky during the second quar-ter—accounting for 58 percent of production. Surface mining techniques accounted for 42 percent of production. Prelimi-nary data indicate that Perry County remained eastern Ken-tucky’s leading coal producing county during the second quarter of 2016 after replacing Pike County last quarter.

Five counties in eastern Kentucky increased production in the second quarter of 2016. Harlan County, the region’s third largest producer, increased production by 3.8 percent in the second quarter of 2016. Whitley and Letcher counties in-creased production by 117.6 and 50.8 percent, respectively during the second quarter.

Eastern Kentucky coal production fell by 14.3 percent during the second quarter of 2016. Production decreased most sub-stantially at surface mining operations, falling 22.1 percent.

April to June 2016

Eastern County Q2 Tonnage Quarter Change Perry 861,339 -20.9% Pike 853,259 -20.6%

Harlan 843,395 +3.8% Knott 311,858 -19.6% Bell 242,419 -4.7%

Martin 217,762 -25.8% Leslie 193,172 -28.3%

Magoffin 88,578 -5.8% Whitley 84,545 +117.6% Floyd 81,392 -47.1% Knox 56,660 -0.1%

Letcher 51,422 +50.8% Johnson 34,322 +21.6%

Lawrence 29,965 -7.2% Breathitt 19,743 +32.9%

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Mine Type Q2 Tonnage Quarter Change Total 5,933,430 -12.3%

Underground 5,340,269 -11.6%

Surface 593,161 -17.5%      

     

Western Kentucky coal production decreased by 12.3 per-cent during the second quarter of 2016. Union County, Ken-tucky’s leading coal producing county, experienced a 7.8 percent reduction in production during the second quarter. As has been the case since 2013, western Kentucky production continued to out pace that of eastern Kentucky.

Western County Q2 Tonnage Quarter Change

Union 1,968,852 -7.8%

Ohio 984,723 -18.4%

Webster 924,450 -9.1%

Hopkins 920,284 -33.1%

Muhlenberg 748,305 +14.5%

McLean 341,326 +4.3%

Daviess 45,490 -3.1%

Western Kentucky Coal Production

Hopkins County had the largest losses in both production and employment in western Kentucky during the second quarter. Coal production fell by 33.1 percent to 920,284 tons, while employment dropped by 117 people.

Western Kentucky mined just over 5.9 million tons during the second quarter of 2016, 90 percent from underground mines and 10 percent from surface mines.

April to June 2016

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During the second quarter of 2016, there were 3,764 per-sons employed at eastern Kentucky coal mines, a decrease of 6.1 percent from the first quarter of the year. Coal mines in western Kentucky decreased total employment by 231 jobs or 7.9 percent. To check for an updated version of this report or for more detailed information on coal production in Kentucky, please visit us online at: energy.ky.gov/Pages/CoalFacts.aspx

Kentucky Coal Mine Employment

Preliminary data indicate that Kentucky coal mines reduced on-site employment by 476 workers, or 6.9 percent of their workforce, during the second quarter of 2016. As of July 1, an estimated 6,465 persons were employed at Kentucky coal mines, which is the lowest level recorded since 1898 when there were an average of 6,399 coal miners.

Description Q2 Employment

Kentucky Total 6,465 -476 -6.9% Underground 3,812 -197 -4.9%

Surface 1,447 -199 -12.1%

Preparation Plant 906 -73 -7.5% Office 300 -7 -2.3%

Quarter Change

Western Counties Q2 Employment Quarter Change Total 2,701 -231 -7.9% Union 649 -53 -7.5% Ohio 526 -28 -5.1%

Hopkins 479 -117 -19.6% Muhlenberg 398 -13 -3.2%

Webster 378 -13 -3.3% McLean 180 -2 -1.1% Marshall 47 -6 -11.3% Daviess 18 -5 -21.7%

Livingston 17 +5 +41.7%

     

Henderson 9 +1 +12.5%

Eastern Counties Q2 Employment Quarter Change Total 3,764 -245 -6.1% Pike 913 -74 -7.5%

Harlan 764 -31 -3.9% Perry 518 -104 -16.7%

Bell 312 -2 -0.6%

Martin 291 -29 -9.1% Knott 186 +23 +14.1% Leslie 183 +0 +0.0%

Whitley 116 +33 +39.8% Floyd 106 +1 +1.0%

Letcher 89 +2 +2.3% Knox 83 -12 -12.6%

Johnson 51 -6 -10.5% Magoffin 46 -1 -2.1% Lawrence 38 -12 -24.0%

Boyd 21 -14 -40.0% Breathitt 14 -7 -33.3%

Clay 14 -8 -36.4%

Laurel 5 +2 +66.7% McCreary 4 0 -0.0%

Estill 10 -6 -37.5%

April to June 2016

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Date

Kentucky Total Eastern Kentucky Western Kentucky Average Tons of Coal Average Tons of Coal Average Tons of Coal

Employment Produced Employment Produced Employment Produced

Annual Quarter Annual Quarter Annual Quarter Annual Quarter Annual Quarter Annual Quarter

2008

Q1

17,670

16,355

121,212,504

30,028,000

14,373

13,278

91,045,224

22,669,880

3,296

3,077

30,167,278

7,358,124

Q2 17,238 30,090,130 13,942 22,682,090 3,296 7,408,039

Q3 18,327 30,539,540 14,883 23,112,800 3,444 7,426,744

Q4 19,030 30,477,960 15,420 22,503,580 3,610 7,974,371

2009

Q1

17,812

19,422

108,263,968

30,809,810

14,098

15,668

75,311,872

22,477,210

3,714

3,754

32,952,100

8,332,597

Q2 18,630 27,264,780 14,702 18,998,720 3,928 8,266,060

Q3 17,075 25,979,240 13,278 17,850,570 3,797 8,128,670

Q4 16,380 24,127,190 12,729 15,902,420 3,651 8,224,772

2010

Q1

17,115

16,378

105,554,104

26,304,890

13,020

12,404

68,222,672

16,883,820

4,095

3,974

37,331,432

9,421,068

Q2 17,217 26,510,520 13,051 17,339,430 4,166 9,171,091

Q3 17,517 26,682,350 13,308 17,187,870 4,209 9,494,482

Q4 17,796 25,972,700 13,484 16,727,910 4,312 9,244,791

2011

Q1

18,069

17,684

109,018,240

27,889,220

13,679

13,331

68,007,480

17,282,860

4,390

4,353

41,010,760

10,606,360

Q2 18,191 27,222,030 13,695 17,385,220 4,496 9,836,813

Q3 18,810 27,804,080 14,301 17,340,210 4,509 10,463,880

Q4 18,087 26,047,990 13,581 15,944,280 4,506 10,103,710

2012

Q1

15,622

17,932

91,358,160

26,571,280

11,117

13,203

49,311,848

15,171,750

4,505

4,729

42,046,316

11,399,530

Q2 16,278 22,924,670 11,731 12,568,670 4,547 10,356,000

Q3 14,406 21,173,110 9,892 11,094,450 4,514 10,078,670

Q4 14,107 20,555,240 9,564 10,343,130 4,543 10,212,120

2013

Q1

12,550

13,223

80,359,000

20,590,860

8,239

8,897

39,480,036

10,144,620

4,310

4,326

40,878,964

10,446,240

Q2 12,882 20,752,660 8,490 10,464,560 4,392 10,288,110

Q3 12,548 19,876,820 8,180 9,667,612 4,368 10,209,210

Q4 11,892 19,081,980 7,443 9,146,575 4,449 9,935,408

2014

Q1

11,508

11,790

77,468,336

19,494,440

7,242

7,366

37,499,304

8,969,519

4,267

4,424

39,969,028

10,524,930

Q2 11,574 19,864,630 7,447 10,240,600 4,127 9,624,035

Q3 11,681 19,866,500 7,239 9,742,734 4,442 10,123,770

Q4 11,619 18,204,500 7,186 8,508,199 4,433 9,696,298

2015

Q1

9,493

10,465

61,424,920

16,938,520

5,897

6,639

28,000,918

7,788,933

3,597

3,826

33,424,002

9,149,591

Q2 9,674 15,817,610 5,958 7,421,363 3,716 8,396,251

Q3 9,094 15,574,200 5,579 6,867,600 3,515 8,706,595

Q4 8,401 12,884,260 5,077 5,712,695 3,324 7,171,565

2016 Q1

6,941

11,397,478

4,009

4,634,209

2,932

6,763,269

Q2 6,465 9,903,261 3,764 3,969,831 2,701 5,933,430

In order to provide the public with timely access to these data, this report uses the best-available estimate for each factor at the time of publication. Data for Q2-2016 are preliminary and subject to revision. Data for previous dates have been revised.

This report is produced by the Kentucky Energy and Environment Cabinet using data from numerous sources including the U.S. Department of Labor’s Mine Safety Health Administration, the Kentucky Department of Revenue, and the Kentucky Division of Mine Safety.